TierOne Corporation Provides Additional Information Regarding its Southwest Florida Residential Construction LoansConstruction Loan Agreement |
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January 30, 2007
Edward J. Swotek, Senior Vice President
Immediately
TierOne Corporation Provides Additional Information Regarding its Southwest Florida Residential Construction Loans
LINCOLN, NE January 30, 2007 TierOne Corporation (NASDAQ: TONE) ("Company"), the holding company for TierOne Bank ("Bank"), today released additional information regarding the status of a group of its residential construction loans in southwest Florida. This information is being presented in response to recent inquires from the investment community that arose in connection with Coast Financial Holdings, Inc.s (NASDAQ: CFHI) disclosure of its troubled residential construction activity on Floridas west coast in a distinctly different area. The Company and the Bank are not associated with Coast Financial Holdings, Inc. in any manner.
The Banks southwest Florida residential construction loans are located primarily in the Cape Coral area of Lee County. Cape Coral is one of the largest master-planned communities in the nation and is the fastest growing city in the eastern United States with populations over 100,000. The housing area where the Banks loans were originated consists of a fully platted, zoned and infrastructure-completed development with direct waterfront access for many properties. The average value of each proposed completed property is approximately $300,000. Each borrower possessed a strong credit score which met Fannie Mae or other secondary market underwriting guidelines and had also obtained a contractual commitment for permanent financing with third-party lenders upon completion of the residence.
Working with a local Florida-based mortgage brokerage firm, the Bank acquired numerous nine- to 18-month residential construction loans for individual homebuyers wishing to build a second or retirement home in the Cape Coral area. No Cape Coral loans have been acquired since December 31, 2005. None of these residential construction loans were made through the Banks loan production offices which specialize primarily in real estate and construction lending to building contractors, not individual homebuyers.
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